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The Hill
40 minutes ago
- The Hill
The Memo: Trump adopts new aggressive stance on Russia
President Trump moved to a more aggressive footing with Russia on Monday, promising to funnel weapons through NATO allies to Ukraine and threatening to hammer Moscow's trading partners with sanctions. Even though there is a lengthy hiatus of 50 days before those sanctions would take effect, it's still a notable shift from the president. Trump had long been skeptical of the pace and scale of U.S. aid to Ukraine. It is only a little more than four months since he and Vice President Vance had a famously fractious meeting with Ukrainian President Volodymyr Zelensky in the Oval Office. In the aftermath of that meeting, where Zelensky was assailed for his supposed ingratitude and the weakness of his bargaining position, it seemed like the choking off of U.S. military aid to Kyiv was near-certain. That, in turn, would make a Russian victory in the war begun by President Vladimir Putin's February 2022 invasion equally inevitable. Now, the picture looks very different. Trump – for reasons that appear personal as much as strategic – has become increasingly irritated with Putin's refusal to bring the war to an end. On Monday, meeting at the White House with NATO General Secretary Mark Rutte, Trump complained that he enjoys 'very pleasant' phone calls with Putin only to see Russian 'missiles go off that night.' The accusation of double-dealing or disingenuousness on the part of Putin has become more of a centerpiece of Trump's rhetoric recently. On Monday he contended that Putin 'didn't fool me,' even as he held that the Russian leader had pulled the wool over the eyes of past Presidents Biden, Obama and George W. Bush. Just last week, Trump made a similar point in even more pointed terms, saying, 'We get a lot of bulls— thrown at us by Putin, if you want to know the truth. He's very nice all the time but it turns out to be meaningless.' Now, of course, the question is how meaningful Trump's own shift will be. The most obviously substantive move is the provision of weapons – notably Patriot air defense systems. The deal by which those, and other weapons, will be bought by European NATO members and then transferred on to Ukraine seems to resolve one central tension in the conflict. It enables Trump to vastly reduce the cost to the U.S. treasury – and thus to U.S. taxpayers – of military aid to Ukraine, while bolstering Ukraine's defenses and ameliorating the panic from U.S. allies in Europe that Trump's isolation would invite greater Russian expansionism. Referring to NATO allies, Trump said on Monday, 'We are going to be sending them weapons and they're going to be paying for them. We're not buying it but we will manufacture it, and they're going to be paying for them.' The Wall Street Journal, citing two unnamed sources familiar with the upcoming weapons transfers, reported that the package could be worth about $10 billion. The Department of State says the United States has provided almost $67 billion in military assistance to Ukraine since Russia's invasion. The sanctions element of Monday's proposal was a bit more vague. Trump initially used the word 'tariffs' to describe what he had in mind as a tactic to deepen Russia's economic isolation. But it fell to Commerce Secretary Howard Lutnick to clarify that Trump was in fact suggesting the imposition of economic sanctions on Moscow's trading partners. Those sanctions are supposedly going to take effect if a peace deal is not arrived at within Trump's 50-day timeframe. There are a few obvious caveats. The most obvious is whether Trump will follow through given his propensity to move in unpredictable ways. A second is whether Putin would try to persuade the president, during that period, that it is actually Ukraine that is being the more stubborn party. A third mixed signal came even on Monday, when Trump appeared lukewarm about the proposed congressional legislation that would ramp up sanctions on Russia directly. Even so, it's notable that the more hawkish members of the GOP, including Sen. Lindsey Graham (R-S.C.), have been vocally enthusiastic about Trump's apparent shift. There are, too, some in Republican circles who believe Trump's instinctive isolationism has been diluted somewhat by the perceived success of the recent U.S. airstrikes against targets in Iran – strikes that resulted neither in any casualties for the U.S., nor created any serious danger of getting sucked into a longer war. The American public also seems to have an appetite for tougher economic measures against Russia. An Economist/YouGov poll last month found that 44 percent of Americans favored increasing sanctions on Russia and 19 percent want to maintain sanctions at their current level, while only 15 percent wanted to reduce or eliminate sanctions. Much remains uncertain, including how Putin will react to Monday's announcements. And, of course, the biggest vexing question is how many concessions either Russia or Ukraine are willing to make to end the war. But Trump, long derided by critics for his softness on Putin, is this time taking a harder line than he ever has before.
Yahoo
2 hours ago
- Yahoo
Trading Day: Resisting renewed tariff tensions
ORLANDO, Florida (Reuters) -TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist World markets were, on the whole, pretty buoyant on Monday as investors shrugged off U.S. President Donald Trump's latest tariff threats over the weekend and braced for a deluge of top-tier economic data from the U.S. and China on Tuesday. While European and Mexican stocks did wobble on Trump's latest trade salvo, the hits were minor. Risk appetite held firm - world equity benchmarks inched up, the Nasdaq and bitcoin hit new highs, and silver reached a fresh 14-year peak. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. Don't panic: Europe Inc cautions calm as bloc tries toavert 30% U.S. tariffs 2. Currency FOMO may yet draw U.S. investors overseas: MikeDolan 3. Central bank independence needs a better defence 4. Why Trump's push for a 1% Fed policy rate could spelltrouble for U.S. economy 5. Wealth funds warm to active management - and China - toweather volatility, report shows Today's Key Market Moves * World stocks tread water, with Wall Street's rise offsetby general softness in Asia and Europe. European and Mexicanstocks fall on Trump's 30% tariff threat. * Canadian stocks, spared from the latest threat for now,rise 0.6% to a new high of 27142 points. * The dollar continues to recover, rising to a three-weekhigh on an index basis. A sixth straight gain marks its best runthis year. * Bitcoin leaps to record $123,236 before settling around$120,000. It's up more than 10% in the last week. * Silver slips on the day, but not before hitting a new14-year high above $39/oz. The $40/oz barrier is in sight. Resisting renewed tariff tensions Markets started a busy week on a solid footing on Monday, as investors withstood the latest escalation in Trump's tariff war with two of America's largest trading partners, and dug in ahead of key market-sensitive economic and corporate events in the coming days. After Trump on Saturday said he would impose a 30% tariff on most imports from the EU and Mexico from August 1, the EU on Sunday said it would extend its suspension of countermeasures until early August and continue to press for a negotiated settlement. The euro and European stocks fell - the single currency hitting a three-week low - but the declines were small. Investors still appear to be optimistic that talks will ultimately be fruitful and a palatable deal will be reached. Trade figures from China earlier in the day were certainly better than expected, although they were boosted by exporters rushing to beat a fragile tariff truce between Beijing and Washington ahead of a looming August deadline. Exports rose 5.8% year-on-year and imports rebounded 1.1%. The next couple of weeks will see bilateral U.S.-EU and U.S.-China trade talks intensify as the early August deadlines approach, and investors can expect a blizzard of headlines to hit their screens. If Monday is any guide, investors are well poised to weather the incoming storm. Trade may have been the main narrative for stock markets on Monday, but less so bonds, which also had the shadows of Federal Reserve independence, Chair Jerome Powell's future, and renewed weakness in Japanese government bonds hanging over them. The U.S. Treasury market was mostly stable although the 30-year yield did flirt with 5.00% and hit a one-month high. Government bond prices elsewhere came under heavier pressure, particularly at the long end of the German and Japanese curves. The 10-year Bund yield rose to its highest since early April and the 30-year Bund yield climbed to highs not seen in almost two years. Yields on Japanese government bonds surged back toward the historic highs from May, on concern that an upcoming election could pave the way for increased fiscal spending. Investors' attention on Tuesday will turn to the monthly economic 'data dump' from China, which also includes second quarter GDP figures. Economists polled by Reuters expect the annual growth rate to have slowed slightly to 5.1% from 5.4% in the January-March period. After that, U.S. CPI inflation figures for June will set the tone for the U.S. trading day. Economists expect inflation to rise moderately across all measures - core, headline, monthly and annual - with the annual core rate regaining a 3% handle. What could move markets tomorrow? * Australia consumer sentiment (July) * China house prices, industrial output, retail sales, urbaninvestment, unemployment (June) * China GDP (Q2) * Germany ZEW sentiment indices (July) * Euro zone industrial production (May) * Canada CPI (June) * U.S. CPI (June) * U.S. 'Empire State' manufacturing index (July) * U.S. Fed officials scheduled to give public remarks:Governor Michael Barr, Richmond Fed President Thomas Barkin,Boston Fed resident Susan Collins, Dallas Fed President LorieLogan Want to receive Trading Day in your inbox every weekday morning? Sign up for my newsletter here. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Jamie McGeever)
Hamilton Spectator
2 hours ago
- Hamilton Spectator
What Trump's new weapons plan for Ukraine might mean
WASHINGTON (AP) — President Donald Trump has endorsed a plan to have European allies buy billions of dollars worth of U.S. military equipment that can be transferred to Ukraine as Kyiv looks for way to better defend itself against intensified Russian attacks. Trump announced the effort Monday during an Oval Office meeting with NATO Secretary-General Mark Rutte, who has been working with European countries to coordinate the purchase of U.S. weapons. The plan is designed to allow the U.S. to funnel more firepower to Ukraine to combat invading Russian forces during their summer military offensive while easing Washington's financial burden. Increased weapons shipments, combined with possible new penalties Trump has promised if a halt to the fighting isn't reached in 50 days, could push Russian President Vladimir Putin into peace talks that Trump has championed for months — so far with little to show for it. Here's a look at what Trump promised and what it might mean: What's the new Ukraine weapons deal Trump announced? The U.S. plans to sell Patriot missile batteries — systems ideal for shielding territory against incoming missile attacks — and other weapons to European allies that would be transferred to Kyiv. 'We're going to supply weapons to NATO at a large amount,' Trump said. Rutte said Germany, Finland, Canada, Norway, Sweden, the United Kingdom and Denmark would be among the buyers to supply Ukraine, and noted that 'speed is of the essence here.' Later Monday, during a meeting with his administration's faith office and business leaders, Trump said, 'They're going to deliver the weapons, and they're going to pay for 100% of the weapons.' The president had earlier teased the announcement , but the details of the transfers — exactly what munitions they would include, the specifics of their delivery and their timing— were unclear. Other parts of the administration deferred to the White House, where officials said details were still being worked out. On a call with the other foreign ministers of the Quad grouping — India, Japan and Australia — Secretary of State Marco Rubio 'underscored that it remains a priority of President Trump to bring the war to an end through a durable negotiated settlement,' State Department spokesperson Tammy Bruce said. German Defense Minister Boris Pistorius met with Defense Secretary Pete Hegseth at the Pentagon to discuss some details — particularly related to the Patriot batteries — and noted greater defense spending. 'We are determined to assume greater responsibility for Europe's deterrence and defense,' said Pistorius, whose government has offered to finance two additional Patriot systems. In addition to Germany, Greece and Spain are among the NATO members believed to have spare Patriots to send to Ukraine, as long as they are eventually replaced. U.S. officials said that anything to be supplied to Ukraine in the short term will have to come from existing stockpiles and that it will take several years to replace whatever is sent to Kyiv. What does Ukraine need from the U.S.? Russia has pounded Ukrainian cities with hundreds of drones and cruise and ballistic missiles that its air defenses are struggling to counter. At the same time, Russia's bigger army is making a new effort to drive back Ukrainian defenders on parts of the 620-mile (1,000-kilometer) front line. Trump announced last week that the U.S. planned to send more defensive weapons to Ukraine , following a prior pause in some deliveries during a review of U.S. stockpiles. Still, the president expressed frustration about U.S. resources going to Ukraine, reiterating Monday that 'this is not Trump's war. We're here to get it finished and stopped.' During the meeting with Rutte, he also praised European leaders for being willing to take on a larger responsibility for arming Ukraine — a far cry from once criticizing Europe for failing to spend more on defense. 'I have to tell you, Europe has a lot of spirit for this war,' Trump said. 'When I first got involved, I didn't think they did, but they do.' Why is Trump threatening tariffs to punish Russia? Trump again vented his frustrations about stalled negotiations to end the war , saying the U.S. will impose steep trade penalties if Moscow doesn't reach a peace deal with Kyiv in the next 50 days. 'Tariffs at about 100% — you'd call them secondary tariffs,' Trump said without providing details. Secondary tariffs would target Russia's trading partners in an effort to isolate Moscow in the global economy — potentially including nations that rely on Russia for oil and natural gas. Commerce Secretary Howard Lutnick later clarified that Trump was actually referring to economic sanctions, rather than tariffs. Separately, some Republicans close to Trump, including South Carolina Sen. Lindsay Graham, are promoting a bipartisan sanctions package targeting Russia that is working its way through Congress. Trump said Monday that 'I'm not sure we need it' given his threat for economic consequences if the fighting continues. But, he added, 'it could be very useful, we'll have to see.' An emboldened Russia has ramped up military offensives on two fronts in Ukraine , seeking an advantage before the fighting season wanes in the fall. Trump's 50-day deadline will allow Kremlin forces to further expand into the strategic eastern logistics hub of Pokrovsk , the capture of which would hand them a major battlefield victory and bring them closer to acquiring the entire Donetsk region . Russia's forces also have been pushing into Ukraine's northern Sumy region, where Putin hopes to create a 'buffer zone' to protect Russia's Kursk and Belgorod regions and defend against the possibility of surprise Ukrainian incursions . Why has Trump changed his tone toward Putin? Trump long boasted of his friendly relationship with Putin, repeatedly asserting that Russia was more willing than Ukraine to reach a peace deal. At the same time, Trump accused Zelenskyy of prolonging the war and called him a 'dictator without elections.' But Russia's relentless onslaught on civilian areas of Ukraine has worn down Trump's patience. In April, he urged Putin to 'STOP!' launching deadly barrages on Kyiv, and the following month he said in a social media post that the Russian leader 'has gone absolutely CRAZY!' Trump said Monday that he remains in frequent contact with Putin but questioned how much those talks have gotten him. 'My conversations with him are very pleasant, and then the missiles go off at night,' Trump said. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .
